REVIEWER IN PRINCIPLES OF MARKETING
4 Ps OF MARKETING MIX
I. Product II. Price III. Place IV. Promotion
I. PRODUCT
-anything that is offered to satisfy the needs and wants of consumers.
>Goods- tangible products
>Services- intangible products
BRAND- (most significant word under product) is a mark of distinction
that can be sensed usually in the form of names/terms, signs/symbols,
design elements or even a combination of these.
Three Functions of Brand
1. Identifies the product or services- enabling consumers to accept or
reject
2. Communicates messages- to the market at large
3. Functions as a legal property- allowing the owners to invest in
building up the value of the brand.
Elements of Branding (SO LO SCENT TAS VI SHAP CO TRAD TA GE)
1. Trade Name- trademarked name, registered through Intellectual
Property Office
2. Generic Category- the category in which the brand would fall under
3. Logo- visual symbol or image that will identify the product
4. Tagline- optional catchphrase
5. Visual Cues- distinctive visual identifiers
6. Shapes- actual shape or form of the product
7. Colors- quickly distinguishable by its color
8. Sounds- such as advertising jingles, or short intro
9. Scents- signature fragrance
10. Tastes- special recipes or secret ingredients
Six Levels of Meaning
1. Attributes- characteristics of product itself
2. Benefits- consumer stand to gain from patronizing a product.
3. Values- core values of a product. Ex. Close family ties
4. Culture- culture of a product. Ex. Bacolod Chicken Inasal
5. Personality- If and only a brand is a person. Ex. Youthful, energetic
6. User- a specific target market or aspirational group.
Ex. Romantic youth for Close Up
Four Levels of Brand Equity
1. Brand Awareness- I am familiar with this brand
2. Brand Acceptability- I like this brand
3. Brand Preference- I prefer this brand
4. Brand Loyalty- I will die if I do not get this brand
II. PRICE
Price should never be just about cost plus mark up. It should also be a
tool for communication and for strategy
Suggested Retail Price (SRP) – pricing too pf suppliers to control the price
Pricing Method
>Going Rate Pricing- simple pricing techniques
-base on industry rates rather than on either cost or market perception
III. PLACE and Placement/ Distribution Channel
Producer- the one who make the product
Distributor- how to best move a product from producer to consumer
Three Key Objectives
1. Effective reach your target market
2. Minimize cost of dissemination
3. Maintain consistency
Distribution Channel
-Set of interdependent Organization that are involved in transferring P/S
to consumers
Interdependent Organization
1. Wholesaler- buy your products in bulk 4. Authorized Distributor
2. Sales Personnel 5. Retail Stores
3. Territory Manager
Types of Retailers (Read Page 239)
1. Supermarket 3. Food Cart 4. Door to door/ vendor
2. Department Store 5. Drugstore
Three Types Distribution Channel
1. On trade Channel- products are directly consumed
Ex. Bars and restaurants
2. Off trade Channel- products are bought for later consumption
Ex. Supermarket
3. Duty Free Channel- represent a significant bulk of sales of imported
liquors. Consumers being limited to Balikbayan or returning overseas
workers.
Functions of Distribution Channel (Read Page 227)
-Gather Information- gather information about the market
-Communicate and Promote- example would be spotlights that
accentuate the product from the shelves or having promodizers
-Take Orders- ex. Online sites such as Zalora, for instance, specialize in
closing deals and offering convenient online payment
-Negotiate Buyer- may require some modifications in terms, such as
discounts
IV. PROMOTION MIX
-also known as Portfolio of Media
-delivers messages to the market in order to achieve business objectives
Types of Promotion Mix
1. Above the Line Communication- refers to the traditional mass media
-Tri-Media (Print, Radio and Television)
Television- Most efficient ways to reach a very wide audience. Remains
the most powerful tool. Over 90 percent of Filipinos regularly watch
television
Radio- Popular media next to tv. 60 % population listen regularly. Radio
ads are limited to a purely aural (audio) experience
Print- Printed publications such as newspapers and magazines.
15% population still read
Allow for detail information and knowledge transfer.
2. Below the Line Communication
>Promotion Program
a. Product Sample- Maybe in a form of hand outs, trial packages taste
test and the like.
b. Coupons- Give consumers the sense that they have been entitled to a
special discount.
c. Price Packs- Offering of multiple goods (product bundles) for
discounted price
d. Premium Free items that are bundled with products
Premium can be:
-In pack- free items inserted into the box of the item itself
-Out pack- free items that are taped to or attached to the container itself
-Off pack- items that can be claimed from a separate location upon
purchase of the product.
>Social Media- Has quickly exploded in popularity
-Facebook- Home site for many brands. Facebook page – easier to
maintain and set up
-Instagram- Visual communications such as product shots. Greater
appeal to younger audience rather than older crowd
-Twitter- Serve as announcement channel. Re: new product, new
development and breaking news
Marketing Communication Plan- essential management tool
-focus on product
Marketing communication plan is not any of the following:
Business Plan- analyzing a current business model and proposing
strategies
Feasibility Study- proposal for a new business. Everything here is in
conceptual phase
Basic Framework of Marketing Communication Plan
-The Challenge- new product offering.
Product repositioning or relaunching.
-Situation Analysis- SWOT Analysis
-Communication Strategy- positioning strategy. Market segment that is
targeted.
-Marketing Mix- 4 Ps